Jordan is a great kid, and he works very hard at his favorite sport: basketball. He gets average grades at school because he spends a lot of his after-school time hanging out with friends and playing video games instead of doing homework. He earns money for doing lawn work and spends every nickel on new video games and eating out with friends. Jordan is about to graduate from high school, and his uncle is going to deposit money in an account for Jordan's future. "In 10 years, you'll need this money," he tells Jordan. If you were Jordan's uncle, which kind of savings account would you choose for your gift? Why? (10 points: 5 points for a correct answer; 5 points for a good explanation)

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Why has the free enterprise system been modified to include some government intervention?

The last time he flew jet value air, juan's plane developed a fuel leak and had to make an 4) emergency landing. the time before that, his plane was grounded because of an electrical problem. juan is sure his current trip will be fraught with problems and he will once again be delayed. this is an example of the bias a) confirmation b) availability c) selective perception d) randomness